Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

In September 2016, DTE Energy executed an agreement to purchase midstream natural gas assets in support of its strategy to continue to grow and earn competitive returns for shareholders. The agreement called for DTE Energy to purchase 100 percent of AGS, located in Pennsylvania and West Virginia, and 40 percent of SGG, in West Virginia, from M3 Midstream. In addition, DTE Energy agreed to purchase 15 percent of SGG from Vega Energy Partners. On October 20, 2016, DTE Energy closed on the purchase of these gathering assets. The combined purchase price for the assets acquired by DTE Energy was $1.3 billion, which consists of $1.2 billion paid in cash and the assumption of approximately $110 million of debt. These assets are part of DTE Energy’s non-utility Gas Storage and Pipelines business which currently owns and manages a network of natural gas gathering, transmission, and storage facilities serving the Midwest, Ontario, and Northeast markets. The acquisition was financed through the issuance of Equity Units and Senior Notes. See Note 8 to the Consolidated Financial Statements, "Long-Term Debt," for more information.

Effective upon closing, DTE Energy has obtained control over and will apply acquisition accounting to the acquired entities. Due to the limited time since the acquisition date, the initial accounting for the business combination is incomplete. As a result, DTE Energy is unable to provide amounts recognized as of the acquisition date for major classes of assets and liabilities acquired as well as pro forma financial information. DTE Energy will include the required information in the combined DTE Energy and DTE Electric Annual Report on Form 10-K for the year ending December 31, 2016.